Malayan Flour Mills up on ex-date for special dividend

KUALA LUMPUR (March 22): MALAYAN FLOUR MILLS BHD [] shares advanced on Thursday after it said the special gross dividend of 62 sen per ordinary share of 50 sen each would go ex on April 2 while the entitlement date was April 4.

At 9.15am, Malayan Flour Mills added nine sen to RM4.45 with 851,200 shares done.

The special dividend was part of the corporate exercise which included a renounceable rights issue of 215.289 million new shares with 107.644 million free warrants and 107.644 new shares.

This was on the basis of two rights shares with one warrant and one bonus share for every two shares held on April 4 at an issue price of 93 sen per rights share.



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KLCI slips in early trade, blue chips weigh

KUALA LUMPUR (March 22): The FBM KLCI slipped in early trade on Thursday, in line with the global shares that drifted lower overnight on weaker U.S. housing data on that dashed investors' hopes for further evidence of a stronger economy than forecast.

The FBM KLCI slipped 2.12 points to 1,580.41 at 9am, weighed by losses in blue chips.Gainers led losers by 86 to 36, while 85 counters traded unchanged. Volume was 50.90 million shares valued at RM14.61 million.

CIMB Research said that in the second leg of its 2012 strategy roadshow, the investors it met in four European cities had relatively light Malaysian holdings.

The research house said politics was the recurrent topic, specifically the election and its timing.

“Although we are optimistic that the period before general elections are called will be buoyant for the stockmarket, we continue to advise investors to sell into strength as election risks remain elevated. Maintain Neutral on Malaysia and end-2012 KLCI target of 1,610,” it said.

Among te eary decliners were Hong Leong Bank, Public Bank, Tenaga, MPHB, IOI Corp, PPB, YTL, and Axiata.

Metronic was the most actively traded counter . Other actives included Ariantec, Hubline, AsiaBio, Ingenuity Solutions, MMSV, Mrco, Utopia n Daya Materials.

Gainers included BAT Malayan Flour Mills, GAB, Jaya tiasa, KLCCP, Texchem, S PSetia and Berjaya Food.



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RHB Research maintains market perform on BToto, FV RM4.85

KUALA LUMPUR (March 22): RHB Research Institute is maintaining its forecast and discounted cashflow-based fair value of RM4.85 for Berjaya Sports Toto (BToto).

It said on Thursday the nine-month net profit ended Jan 31, 2012 was in line with expectations.

BToto declared a third interim single-tier dividend per share of 6.0 sen (3Q11: 6.0 sen), bringing the nine-month DPS to 22 sen versus its FY12 forecast of 25 sen.

“We maintain our dividend payout projections at 80%-85%, which translate to net yields of 5.5% to 6.5% per annum,” it said.

RHB Research said although it agrees with the management’s view that it would be able to grow lotto sales by strong double digits in FY04/12 (9MFY12: up 82.4% on-year),it believed its target of growing 4D sales by single digits was not as achievable.

The research said this was because that up to the nine-month period, 4D sales registered a 1.1% on-year decline, possibly due to cannibalisation from the 4D jackpot game.

“We estimate BToto’s 3Q lotto sales contributed 17.2% of total sales (vs. 15.9% in the 2Q),” it said.

“Given our more upbeat outlook on the economy, we believe BToto’s defensive qualities may no longer appeal to investors who are now looking for higher beta stocks.

“We believe earnings prospects from the 4D jackpot have already largely been reflected in its share price and consensus estimates. Maintain Market Perform,” said RHB Research.



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CIMB Research has technical buy on Envair at 28.5 sen

KUALA LUMPUR (March 22): CIMB Equities Research has a technical buy on 28.5 sen at which it is trading at a price-to-book of 1.7 times.

It said on Thursday Envair is still consolidating in a huge triangle pattern. If the candles can swing past the flag resistance trend line, there is a possibility that prices may bounce back to test the 31 sen and 34 sen levels, it added.

“Indicators readings remain lethargic, but we think these are likely the reflection of its earlier consolidation. Be quick to cut loss if the candles drop below its 50-day SMA, now at 27.5 sen,” it said.



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CIMB Research has technical buy on Winsun at 12 sen

KUALA LUMPUR (March 22): CIMB Equities Research has a technical buy on Winsun Technologies at 12 sen at which it is trading at a price-to-book of 0.8 times.

It said on Thursday since it featured Winsun as a technical sell stock on March 5, prices fell from a high of 20 sen to its recent swing low of 11 sen. At current levels, it sees the formation of a short term support, which is near the 61.8% Fibonacci Retracement levels.

“MACD histogram bars are falling at a slower pace, suggesting that selling pressure is tapering off. RSI has also flattened out,” it said.

CIMB Research said aggressive traders may take some position now with a stop place below 11 sen. Next resistance levels are 13.5 sen and 15 sen.



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CIMB Research has technical sell on Prestariang at 92 sen

KUALA LUMPUR (March 22): CIMB Equities Research has a technical sell on Prestariang at 92 sen at which it is trading at a price-to-book of 2.7 times

It said on Thursday the uptrend channel from its Sep-11 low is at stake. If the candles fail to hold on above the support trend line (now at 90.5 sen), prices may tumble towards 86.5 sen, before heading towards 79.5 sen next.

“Selling pressure should accelerate once the candles fall below the 50-day SMA,” it said.

CIMB Research said indicators are showing signs of exhaustion. MACD signal line has staged a negative crossover, pushing its histogram bars into the negative territory while RSI is also below the 50pts mark.

“Unload on strength looks like a good option here, especially near the 94 sen to 97 sen resistances. Put a buy stop at 99.5 sen, just in case,” it said.



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HDBSVR sees KLCI struggling after crossing 1,580

KUALA LUMPUR (March 22): Hwang DBS Vickers Research said the FBM KLCI, after crossing slightly above the resistance hurdle of 1,580 on Wednesday, could struggle to maintain its position ahead.

It said on Thursday that from a technical perspective, the key market barometer is expected to show a downward bias in the near term.

“This follows a lackluster overnight performance on Wall Street. Major U.S. equity bellwethers ended between -0.3% and flat in the absence of fresh catalysts last night,” it said.

HDBSVR said hoping to catch investors’ attention on the local bourse on Thursday are stocks like: (a) Texchem Resources, after disposing of a 70% stake in two subsidiaries that are involved in the business of manufacturing and trading of insecticide products for RM129 million; (b) Bumi Armada, which has signed a contract worth RM115 million to provide oil & gas platform supply vessel; and (c) Mitrajaya, following the acceptance of letters of award for two CONSTRUCTION [] jobs totaling RM103 million.



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Stocks to watch: BToto, Lysaght, Bumi Armada, MHC Plantations

KUALA LUMPUR (March 21) : As the FBM KLCI rebounded from the red to close in positive territory on Wednesday, it will be interesting to watch if the index will be able to sustain its gains on Thursday.

The KLCI rose 0.31% or 4.91 points to close at 1,582.53 points on Wednesday.

Analysts said they remain cautious on the trading dynamics of the KLCI following gains from its low last September. This has prompted anticipation of profit-taking by institutional and retail investors ahead of the country’s general election against a lack of domestic catalyst.

The expectation is that the KLCI may consolidate in the near term and the spotlight will now be directed at companies with smaller market capitalisation.

Stocks to watch on Thursday include BERJAYA SPORTS TOTO BHD [] Lysaght Galvanised Steel Bhd, TEXCHEM RESOURCES BHD [], Bumi Armada Bhd, MHC PLANTATION []S BHD [] and DAYA MATERIALS BHD [].

BToto posted net profit of RM112.74 million in the third quarter ended Jan 31, 2012, a slight decline of 1.8% from the RM114.87 million a year ago. Its revenue rose 15.5% to RM983.46 million from RM851.16 million. Earnings per share were 8.44 sen compared with 8.59 sen. It declared a third interim single tier exempt dividend of 6.0 sen per share which will go ex on April 9.

For the nine-month period ended Jan 31, 2012, its earnings rose 27.3% to RM310.52 million from RM243.91 million in the previous corresponding period. Revenue rose at a slower pace of 6.3% to RM2.691 billion from RM2.532 billion.

Lysaght clinched four subcontracts with a collective value of RM22.75 million from Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd, The contracts involve the supply, fabrication, delivery and installation of antenna poles, Lysaght said.

Shares of Lysaght which was untraded on Wednesday, last closed at RM2.08 last Friday (March 16).

Oil and gas support services firm Daya Materials and Italy-based joint venture partner Magneti Marelli which is a part of the Fiat Group, has secured a RM62 million contract from the Penang Development Corp to build a factory and offices at Penang’s Batu Kawan Industrial Park.

Daya Materials rose one sen to 19.5 sen on Wednesday.

Diversified entity Texchem Resources Bhd is selling a controlling 70% stake in two units to Japan-based Fumakilla Ltd for US$42.4 million. The subsidiaries are Technopia Sdn Bhd, a manufacturer of insecticides, and PT Technopia Jakarta, a mosquito coil producer.

Trading of Texchem shares which was suspended on Wednesday will resume trading on Thursday. The stock was last traded at 59 sen on Tuesday (March 20)

Oil and gas support services firm Bumi Armada has secured a RM115 million contract from Brazil national oil company Petróleo Brasileiro S.A. for the supply of a platform supply vessel to the South American entity. Bumi Armada added three sen to RM4.32 on Wednesday.

MHC plans to undertake a bonus issue 56.16 million new shares and a similar number of warrants. Both exercises will undertakenon the basis two bonus units (new shares and warrants) for every five existing shares held.

MHC shares was down one sen to RM1.60.



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